Electrification
Visualizing the Natural Graphite Supply Problem
The following content is sponsored by Northern Graphite.
Visualizing the Natural Graphite Supply Problem
Graphite is a critical mineral for lithium-ion batteries, and its battery demand is expected to grow ten-fold by 2030.
Meeting this increasing demand will require a higher supply of both natural graphite and its synthetic counterpart. However, graphite’s entire supply chain is heavily reliant on China, which makes it vulnerable to disruptions while creating environmental challenges.
This infographic from our sponsor Northern Graphite highlights China’s stronghold over the graphite supply chain and outlines the need for new natural graphite mines.
China’s Dominance in the Graphite Supply Chain
From mining natural graphite to manufacturing battery anodes, China dominates every stage of the graphite supply chain.
For example, in 2020, 59% of global natural graphite production came from China. Mozambique, the second-largest producer, churned out 120,000 tonnes—just one-fifth of Chinese production.
Country | 2020E production, tonnes | % of total |
---|---|---|
China 🇨🇳 | 650,000 | 59.1% |
Mozambique 🇲🇿 | 120,000 | 10.9% |
Brazil 🇧🇷 | 95,000 | 8.6% |
Madagascar 🇲🇬 | 47,000 | 4.3% |
India 🇮🇳 | 34,000 | 3.1% |
Russia 🇷🇺 | 24,000 | 2.2% |
Ukraine 🇺🇦 | 19,000 | 1.7% |
Norway 🇳🇴 | 15,000 | 1.4% |
Pakistan 🇵🇰 | 13,000 | 1.2% |
Canada 🇨🇦 | 10,000 | 0.9% |
Rest of the World 🌎 | 73,000 | 6.6% |
Total | 1,100,000 | 100% |
China’s massive output makes the other top nine countries look substantially smaller in terms of natural graphite production. Moreover, China also dominates the manufacturing of synthetic graphite and the conversion of graphite into anode material for batteries.
In 2018, China produced nearly 80% of all synthetic graphite, and in 2019, it was responsible for 86% of all battery anode material production. This dependence on graphite supply from China puts the supply chain at risk of political disruptions and makes it unsustainable for the long term.
Unsustainable Production: Natural Graphite vs Synthetic Graphite
The carbon footprint of manufacturing partly depends on the source of energy used in production.
Coal dominates China’s energy mix with a 58% share, followed by petroleum and other liquids. This increases the carbon footprint of all production and especially that of synthetic graphite, which involves energy-intensive heat treatment of petroleum coke.
Energy source | Type | % of China's energy consumption (2019) |
---|---|---|
Coal | Fossil fuel | 58% |
Petroleum and other liquids | Fossil fuel | 20% |
Hydro | Renewable | 8% |
Natural gas | Fossil fuel | 8% |
Other renewables | Renewable | 5% |
Nuclear | Non-renewable | 2% |
Total | N/A | 100% |
Percentages may not add to 100% due to rounding.
One study found that producing one kg of synthetic graphite releases 4.9kg of carbon dioxide into the atmosphere, in addition to smaller amounts of sulfur oxide, nitrogen oxide, and particulate matter. While the carbon footprint of natural graphite is substantially smaller, it’s likely that China’s dependence on coal contributes to emissions from production.
Furthermore, concentrated production in China means that all this graphite travels long distances before reaching Western markets like the United States. These extensive shipping distances further exacerbate the risk of disruptions in the graphite supply chain.
The Need for New Sources
As the demand for graphite increases, developing a resilient graphite supply chain is crucial to the European Union and the U.S., both of which have declared graphite a critical mineral.
New graphite mines outside China will be key to meeting graphite’s rising demand and combating a potential supply deficit.
Northern Graphite is positioned to deliver natural graphite in a secure, sustainable, and transparent manner for the green economy.
Electrification
Visualizing China’s Dominance in Battery Manufacturing (2022-2027P)
This infographic breaks down battery manufacturing capacity by country in 2022 and 2027.

Visualizing China’s Dominance in Battery Manufacturing
With the world gearing up for the electric vehicle era, battery manufacturing has become a priority for many nations, including the United States.
However, having entered the race for batteries early, China is far and away in the lead.
Using the data and projections behind BloombergNEF’s lithium-ion supply chain rankings, this infographic visualizes battery manufacturing capacity by country in 2022 and 2027p, highlighting the extent of China’s battery dominance.
Battery Manufacturing Capacity by Country in 2022
In 2022, China had more battery production capacity than the rest of the world combined.
Rank | Country | 2022 Battery Cell Manufacturing Capacity, GWh | % of Total |
---|---|---|---|
#1 | 🇨🇳 China | 893 | 77% |
#2 | 🇵🇱 Poland | 73 | 6% |
#3 | 🇺🇸 U.S. | 70 | 6% |
#4 | đź‡đź‡ş Hungary | 38 | 3% |
#5 | 🇩🇪 Germany | 31 | 3% |
#6 | 🇸🇪 Sweden | 16 | 1% |
#7 | 🇰🇷 South Korea | 15 | 1% |
#8 | 🇯🇵 Japan | 12 | 1% |
#9 | 🇫🇷 France | 6 | 1% |
#10 | 🇮🇳 India | 3 | 0.2% |
🌍 Other | 7 | 1% | |
Total | 1,163 | 100% |
With nearly 900 gigawatt-hours of manufacturing capacity or 77% of the global total, China is home to six of the world’s 10 biggest battery makers. Behind China’s battery dominance is its vertical integration across the rest of the EV supply chain, from mining the metals to producing the EVs. It’s also the largest EV market, accounting for 52% of global sales in 2021.
Poland ranks second with less than one-tenth of China’s capacity. In addition, it hosts LG Energy Solution’s Wroclaw gigafactory, the largest of its kind in Europe and one of the largest in the world. Overall, European countries (including non-EU members) made up just 14% of global battery manufacturing capacity in 2022.
Although it lives in China’s shadow when it comes to batteries, the U.S. is also among the world’s lithium-ion powerhouses. As of 2022, it had eight major operational battery factories, concentrated in the Midwest and the South.
China’s Near-Monopoly Continues Through 2027
Global lithium-ion manufacturing capacity is projected to increase eightfold in the next five years. Here are the top 10 countries by projected battery production capacity in 2027:
Rank | Country | 2027P Battery Cell Manufacturing Capacity, GWh | % of Total |
---|---|---|---|
#1 | 🇨🇳 China | 6,197 | 69% |
#2 | 🇺🇸 U.S. | 908 | 10% |
#3 | 🇩🇪 Germany | 503 | 6% |
#4 | đź‡đź‡ş Hungary | 194 | 2% |
#5 | 🇸🇪 Sweden | 135 | 2% |
#6 | 🇵🇱 Poland | 112 | 1% |
#7 | 🇨🇦 Canada | 106 | 1% |
#8 | 🇪🇸 Spain | 98 | 1% |
#9 | 🇫🇷 France | 89 | 1% |
#10 | 🇲🇽 Mexico | 80 | 1% |
🌍 Other | 523 | 6% | |
Total | 8,945 | 100% |
China’s well-established advantage is set to continue through 2027, with 69% of the world’s battery manufacturing capacity.
Meanwhile, the U.S. is projected to increase its capacity by more than 10-fold in the next five years. EV tax credits in the Inflation Reduction Act are likely to incentivize battery manufacturing by rewarding EVs made with domestic materials. Alongside Ford and General Motors, Asian companies including Toyota, SK Innovation, and LG Energy Solution have all announced investments in U.S. battery manufacturing in recent months.
Europe will host six of the projected top 10 countries for battery production in 2027. Europe’s current and future battery plants come from a mix of domestic and foreign firms, including Germany’s Volkswagen, China’s CATL, and South Korea’s SK Innovation.
Can Countries Cut Ties With China?
Regardless of the growth in North America and Europe, China’s dominance is unmatched.
Battery manufacturing is just one piece of the puzzle, albeit a major one. Most of the parts and metals that make up a battery—like battery-grade lithium, electrolytes, separators, cathodes, and anodes—are primarily made in China.
Therefore, combating China’s dominance will be expensive. According to Bloomberg, the U.S. and Europe will have to invest $87 billion and $102 billion, respectively, to meet domestic battery demand with fully local supply chains by 2030.
Electrification
Visualizing 25 Years of Lithium Production, by Country
Lithium production has grown exponentially over the last few decades. Which countries produce the most lithium, and how has this mix evolved?

Lithium Production by Country (1995-2021)
Lithium is often dubbed as “white gold” for electric vehicles.
The lightweight metal plays a key role in the cathodes of all types of lithium-ion batteries that power EVs. Accordingly, the recent rise in EV adoption has sent lithium production to new highs.
The above infographic charts more than 25 years of lithium production by country from 1995 to 2021, based on data from BP’s Statistical Review of World Energy.
The Largest Lithium Producers Over Time
In the 1990s, the U.S. was the largest producer of lithium, in stark contrast to the present.
In fact, the U.S. accounted for over one-third of global lithium production in 1995. From then onwards until 2010, Chile took over as the biggest producer with a production boom in the Salar de Atacama, one of the world’s richest lithium brine deposits.
Global lithium production surpassed 100,000 tonnes for the first time in 2021, quadrupling from 2010. What’s more, roughly 90% of it came from just three countries.
Rank | Country | 2021 Production (tonnes) | % of Total |
---|---|---|---|
#1 | Australia 🇦🇺 | 55,416 | 52% |
#2 | Chile 🇨🇱 | 26,000 | 25% |
#3 | China 🇨🇳 | 14,000 | 13% |
#4 | Argentina 🇦🇷 | 5,967 | 6% |
#5 | Brazil 🇧🇷 | 1,500 | 1% |
#6 | Zimbabwe 🇿🇼 | 1,200 | 1% |
#7 | Portugal 🇵🇹 | 900 | 1% |
#8 | United States 🇺🇸 | 900 | 1% |
Rest of World 🌍 | 102 | 0.1% | |
Total | 105,984 | 100% |
Australia alone produces 52% of the world’s lithium. Unlike Chile, where lithium is extracted from brines, Australian lithium comes from hard-rock mines for the mineral spodumene.
China, the third-largest producer, has a strong foothold in the lithium supply chain. Alongside developing domestic mines, Chinese companies have acquired around $5.6 billion worth of lithium assets in countries like Chile, Canada, and Australia over the last decade. It also hosts 60% of the world’s lithium refining capacity for batteries.
Batteries have been one of the primary drivers of the exponential increase in lithium production. But how much lithium do batteries use, and how much goes into other uses?
What is Lithium Used For?
While lithium is best known for its role in rechargeable batteries—and rightly so—it has many other important uses.
Before EVs and lithium-ion batteries transformed the demand for lithium, the metal’s end-uses looked completely different as compared to today.
End-use | Lithium Consumption 2010 (%) | Lithium Consumption 2021 (%) |
---|---|---|
Batteries | 23% | 74% |
Ceramics and glass | 31% | 14% |
Lubricating greases | 10% | 3% |
Air treatment | 5% | 1% |
Continuous casting | 4% | 2% |
Other | 27% | 6% |
Total | 100% | 100% |
In 2010, ceramics and glass accounted for the largest share of lithium consumption at 31%. In ceramics and glassware, lithium carbonate increases strength and reduces thermal expansion, which is often essential for modern glass-ceramic cooktops.
Lithium is also used to make lubricant greases for the transport, steel, and aviation industries, along with other lesser-known uses.
The Future of Lithium Production
As the world produces more batteries and EVs, the demand for lithium is projected to reach 1.5 million tonnes of lithium carbonate equivalent (LCE) by 2025 and over 3 million tonnes by 2030.
For context, the world produced 540,000 tonnes of LCE in 2021. Based on the above demand projections, production needs to triple by 2025 and increase nearly six-fold by 2030.
Although supply has been on an exponential growth trajectory, it can take anywhere from six to more than 15 years for new lithium projects to come online. As a result, the lithium market is projected to be in a deficit for the next few years.
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